Effects of the new bankruptcy law

The bankruptcy reform legistation that took effect in 2005 is often referred to as the “new bankruptcy law.”  While there have been many changes to the bankruptcy laws, the truth is that most people will still be able to qualify for either a Chapter 7 bankruptcy or a Chapter 13 bankruptcy.  To determine the type of bankruptcy for which an individual or husband and wife may qualify, it is necessary to understand the requirements and qualifications that apply to each type of bankruptcy. Each person’s particular financial situation must be examined and analyzed to determine which type of bankruptcy is available.  Those that pass the “mean test” will, may be eligible to file a chapter 7 bankruptcy and those whose incomes exceed the median income for their state and who do not pass the “means test” may be eligible for a chapter 13 bankruptcy.  The means test, however, is only the beginning of the analysis because there may be other facts and circumstances that may make a chapter 13 filing the more desirable option. Rather than listening to all of the negative hype about the changes to the bankruptcy laws, it is better to meet with an experienced and knowledgeable bankruptcy lawyer to discuss your particular financial situation. Keep in mind that everyone’s financial situation is different and the only way to find out about your situation is to meet with a bankruptcy lawyer and discuss how the new bankruptcy law applies to your financial circumstances.

We are a debt relief agency.  We help people file for relief under the Bankruptcy Code.

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